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What’s Best: AX On-Premise, Dynamics 365, or A Hybrid?

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    AX On-Premise, Dynamics 365, or A Hybrid

    Updated 02/01/2017: Are you shopping for ERP, and find yourself wondering, "What's best for my business? AX On-Premise, Dynamics 365 in the cloud or on-premise, or a Hybrid Configuration?" All three solutions offer an ERP platform that uniquely fits your business.  Discover and glean insights from the comparison and contrast of Microsoft's on-premise software with both the Cloud solution, and the Hybrid platform that need to be implemented by Cloud Service Providers (CSP).

    While there is convenience and flexibility that comes with cloud-based enterprise resource planning (ERP) technology in particular Dynamics 365 for Operations, the system requires applications or apps to deliver some of the customization given to organizations and manufacturers by Value Added Resellers (VAR).  To explain further Dynamics AX on-premise, allows your business to make ERP customizations based on the way your business works as the code itself can be changed in AX by your VAR or Microsoft Partner.  Dynamics 365 on the other hand, has encapsulated code, and any desired changes are made through apps which can also be completed by a experienced IT group or your VAR.  

    Even though the cloud platform gives concerted functionality of ERP and CRM by Microsoft Dynamics 365's common data model, doubters continue to worry about the vulnerabilities inherent in: the Cloud; the Internet of Things (IoT); and drops in internet connectivity.  (If your company is mostly concerned with this last problem, the hybrid configuration detailed below may be best for your business). Like discussed briefly earlier, on-premise ERP platforms, offer a higher ability to customize specific features tailored just for your business. On top of the perceived fear of Cloud platform vulnerabilities, and less customizations, there are 6 valid reasons for selecting an On-Premise ERP solution.  Some of those reasons are:

    1) Your company's leadership holds a non-discretionary attitude towards cloud computing

    2) Your business model needs control of your: data, data residency, and data isolation

    3)  Your business information fluctuates faster than the stock market so dependency on speed and connectivity is extremely high to ensure business continuity

    To read the other 3 reasons why Dynamics AX On-Premise may be preferable, read:  "6 Reasons to Choose An On-Premise ERP like Dynamics AX".


    Microsoft's On-Premise Solution

    For On-Premise, your company has three options, to choose from: 1). Dynamics AX or 2). Dynamics 365 for Operations, or 3). The hybrid model.

    1.) Dynamics 365 for Operations

    Dynamics 365 for Operations will be available to purchase on-premise starting in June 2017 and a preview will begin in April.  The downside to remaining on premise with Dynamics 365 is as follows:  The on-premise data will not  benefit from Microsoft's intelligence capabilities of embedded analytics, machine learning, or other capabilities available to cloud subscribers.

    2.) Dynamics AX On-Premise.

    Dynamics AX On-Premise, once referred to as AX 2012 R3, may seem outdated by the name alone, but it is still rated by Panorama as one of the leaders in ERP.  Microsoft is still investing in this in this solution. In fact, the software's last major cumulative release was just released on 11/21/2016.  Basically the solution may be a misnomer, but it has the features and functionality of Dynamics 365 for Operations; however, it is on-premise and does not have the HTML 5 code base.

    Compared to other ERP competitors, Dynamics AX reduces the average implementation time to around 10 months, lowers the cost of implementation while decreasing risk, all the while giving higher customization abilities allowing for company wide satisfaction and user-satisfaction. Because of the customization and scalable configure-ability of AX, the solution is a better fit for manufacturers. Dynamics ERP gives manufacturers:

    • Financial Management
    • Business Intelligence and Reporting
    • Inventory Management
    • Warehouse Management
    • Supply Chain Management
    • Trade and Logistics
    • Product Builder (Configuration)
    • Product Life-cycle Management
    • Manufacturing Solutions (Discrete & Process)
    • Master Planning
    • Shop Floor Control
    • Service Management
    • Project Accounting & Management
    • HR Management
    • Payroll
    • Workspace Collaboration
    • Configuration and Development (Full Source Code)
    • Enterprise Portal

    Yes, other ERP solutions offer enterprise integration but none of them have the one unifying experience of Dynamics AX On-Premise. Dynamics AX is composed of many modules, which can be thought of as functional compartments. These modules work together to make running a business easier.

    3). Microsoft's Hybrid Solution:

    If your company needs the connectivity of on premise, but wants the synergy of ERP and CRM in the Cloud, a hybrid option can be deployed.  For example, retailers or airlines must ensure that they will be able to run their operations even if they lose connectivity for just a few seconds. For these scenarios, Microsoft provides an on-premise server, designed to operate with the simplicity of an appliance, that caches the data locally to accelerate operations when the service is connected.  Essentially, the server captures the offline transactions when it is not connected, and recovers the offline transactions upon re-connection. This combination of a cloud system operating together with local hardware appliances provides an excellent synergy of capabilities and functions.

    Microsoft's Cloud ERP: Dynamics 365 for Operations

    Microsoft Dynamics 365 for Operations packages CRM and ERP in the cloud giving key decision makers access on nearly any device, anywhere, at anytime.  This unified solution deployed in one cloud service has role based subscriptions, and functions better with purpose-built apps.  These apps can help manage specific business functions like field service, customer service, and project service automation with hardly any coding required. Using the common data model, Dynamics 365 includes analytics from Cortana Intelligence and Power BI, and the productivity power of Office 365.

    The Dynamics 365 for Operations is designed so the apps under the common data model umbrella can be easily and independently deployed. Your business can start with the apps you need, and as your business demands, you can adopt additional capabilities with ease as all the apps work together.

    Dynamics 365 for Operations provides:

    • departments throughout your organization access to the same role based information
    • your employees to be more productive as no duplicate data entry is required
    • siloed data to be a distant memory allowing visibility into your company
    • data entry  and reports through touch
    • training on procedures through Task Guides
    • happier and more efficient employees through a one screen Workspace

    At Clients First Business Solutions, we are a both a Microsoft Gold Partner and a Microsoft Cloud Service Provider with a team of tenured specialists with core competencies in the implementation and support of Microsoft Dynamics.  In fact we have over 170 years combined experience in Dynamics ERP.  To explore all the capabilities of Dynamics AX On-Premise, or Dynamics 365 for Operations implemented in the cloud or on a hybrid platform and find out how thse business solution can help your business in manufacturing whether it be for process or discrete, achieve its full potential reach out to one of our Dynamics AX offices:

    Email: Minneapolis/St. Paul, Minnesota, or call at 877.428.7205.

    Email: Dallas/Fort Worth, Texas , or call at 800.331.8382.

    We are committed to making your work life easier through making ERP work harder for you and giving you better business processes as a result.


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